SLM Corp., commonly known as Sallie Mae, said Thursday that the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions have approved the company's application for an industrial bank charter.
Beginning in January, Sallie Mae Bank will fund and originate private education and federally guaranteed consolidation loans made by Sallie Mae to students and families nationwide. The industrial bank charter also allows Sallie Mae to expand the products and services it can offer to students and families. The company's private education loan products also will continue to be available through several of its lending partners.
SLM said that although the bank's services will be provided nationally, the operations will be conducted through a single branch in Salt Lake City. Mark B. Howard, president and chief executive officer of Sallie Mae Bank and former chief financial officer of Volkswagen Bank, will lead an initial staff of 11.